Robinhood, a popular millennial trading platform, has released its quarterly earnings report, surpassing analyst estimates. The report reveals record revenues of $618 million, a 40% increase year-over-year, with cryptocurrency revenue surging 232% to $126 million. This growth is primarily attributed to transaction-based revenues, which rose 59% to $329 million. The platform's crypto revenue has tripled in the first quarter.

Net income for the quarter reached $157 million, or 18 cents per share, exceeding the 6-cent average estimate from analysts. This marks a significant improvement from the previous year's loss of $511 million, or 57 cents per share. Gold-based products also performed well, with gold subscribers increasing to a record high of 1.7 million in the first quarter.

Despite this success, Robinhood faces regulatory challenges. On May 4, the platform received a Wells notice from the US Securities and Exchange Commission (SEC), indicating potential enforcement action regarding its crypto business. The SEC argues that most tokens traded on Robinhood are securities, subject to SEC rules and registration requirements.

CEO Vlad Tenev expressed disappointment, emphasizing the platform's careful approach to crypto offerings. The regulatory scrutiny raises concerns about the future of this income stream, with Robinhood's stock (HOOD) gaining 5.2% in after-hours trading to reach $18.60, a 50% increase this year.